Rumors that Deutsche Telekom AG is in talks to buy British mobile phone company One2One for about $12 billion continued last week amid renewed speculation the German phone company might also be interested in buying Sprint Corp.
Deutsche Telekom has been the subject of such speculation since it failed in its attempt to merge with Telecom Italia SpA earlier this year and subsequently raised $11 billion in a secondary offering. The company has pledged to become a global player present in all large markets, planning to acquire mobile-phone companies, Internet service providers and information systems groups.
Deutsche Telekom and France Telecom SA each own minority interests in Sprint as part of the trio’s Global One alliance, which is long-rumored to be near collapse. Sprint has been widely rumored to be negotiating hookups with Deutsche Telekom and France Telecom.
Analysts speculated Deutsche Telekom could buy France Telecom’s stake in Sprint as a first step toward an eventual merger.
Deutsche Telekom’s attempt earlier this year to merge with Telecom Italia damaged its relationship with France Telecom, which is suing Deutsche Telekom, claiming it breached its strategic partnership agreements by not revealing its plans. France Telecom last month said it would sell all of its shares in Deutsche Telekom next year.
Rumors also circulated that Deutsche Telekom may be considering a tie-up with Qwest Communications International Inc.
Deutsche Telekom was one of five contenders vying for One2One, which was put up for sale by owners Cable & Wireless plc and MediaOne Group Inc. in March. All of the bidders eventually dropped out, but then Deutsche Telekom reportedly re-entered negotiations with the company.
A Deutsche Telekom official last week declined to comment on the report, but told Reuters, “You can assume we are on the move, that we will exploit every possibility. We’ve always said we’ll appraise acquisitions in growth areas.”
